Germany's financial regulator BaFin is examining EY's suitability as a financial auditor following the collapse of payment services firm Wirecard, Handelsblatt newspaper reported on Tuesday, citing an economy ministry document.
"Bafin is currently investigating whether an examination of company financial statements by Ernst & Young GmbH WPG would endanger achieving the purpose of the examination," the ministry said.
In December, German prosecutors opened an investigation into partners at EY over the Wirecard scandal after an accounting watchdog filed a report accusing them of criminality in their work for the failed payments company.
EY has lost a number of prominent contracts since news of the Wirecard scandal broke.
(Reporting by Riham Alkousaa; Editing Madeline Chambers)
